Roger Federer-Backed On Holding Skyrockets: Sneaker Brand Crushes Sales Forecasts

Wall Street’s latest darling isn’t another crypto meme coin—it’s a sneaker company. On Holding, the Swiss performance brand backed by tennis legend Roger Federer, just upgraded its outlook after sales blew past expectations.

From Court to Street: The Federer Effect

Celebrity endorsements usually fizzle faster than a shitcoin rally, but On’s fusion of athletic credibility and streetwear hype is printing money. The brand’s running shoes—now spotted on everyone from marathoners to Silicon Valley bros—are driving a rare retail success story.

When Fundamentals Actually Matter

Unlike certain overvalued tech stocks (looking at you, SaaS companies), On’s growth isn’t fueled by VC funny money. Real revenue. Real demand. And now, a revised forecast that’s got analysts scrambling to adjust their spreadsheets.

The Punchline?

In a market obsessed with AI and decentralized vaporware, a damn shoe company just schooled everyone on execution. Maybe the ‘metaverse’ should try making products people actually want.

Key Takeaways

• Swiss sneaker maker On Holding's revenue took off on strong direct-to-consumer sales.
• The company backed by tennis great Roger Federer also raised its full-year guidance.
• Co-founder David Allemann said the results showed On Holding's' strategy is working.

On Holding (ONON) shares soared 16% in premarket trading when the high-end sneaker Maker posted better-than-expected results and boosted its guidance on booming direct-to-consumer (DTC) sales.

The Switzerland-based firm backed by tennis great Roger Federer reported second-quarter revenue jumped 32% year-over-year to 749.2 million Swiss francs ($925.9 million), well above Visible Alpha forecasts.

DTC sales soared 47% to CHF308.3 million ($381.0 million), which the company credited to "continued focus on operational excellence, and favorable foreign exchange developments." DTC made up 41% of total revenue, a new second-quarter record. Sales from its wholesale channel increased 23% to CHF441.0 million ($544.8 million).

'Our Strategy Is Working'

Co-founder and Executive Co-Chair David Allemann said On is "playing the long game," and that the performance "proves our strategy is working—from our diversified portfolio of iconic footwear franchises to our stellar growth in apparel and our global brand footprint."

On now sees full-year revenue of CHF2.91 billion ($3.60 billion), compared to the earlier estimate of CHF2.86 billion ($3.53 billion), and gross profit margin in the range of 60.5% to 61.0%, versus the previous outlook of 60.0% to 60.5%.

Shares of On Holding finished trading yesterday down nearly 17% year-to-date. 

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